LITHIA MOTORS INC (LAD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:LAD - US5367971034 - Common Stock
336.41 USD
+3.8 (+1.14%)
336.41 USD
0 (0%)
Taking everything into account, LAD scores 5 out of 10 in our fundamental rating. LAD was compared to 122 industry peers in the Specialty Retail industry. There are concerns on the financial health of LAD while its profitability can be described as average. LAD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year LAD was profitable.
LAD had a positive operating cash flow in the past year.
Each year in the past 5 years LAD has been profitable.
In multiple years LAD reported negative operating cash flow during the last 5 years.
1.2 Ratios
LAD has a Return On Assets of 3.67%. This is in the better half of the industry: LAD outperforms 62.30% of its industry peers.
LAD has a better Return On Equity (13.28%) than 71.31% of its industry peers.
LAD has a Return On Invested Capital (5.53%) which is in line with its industry peers.
LAD had an Average Return On Invested Capital over the past 3 years of 7.58%. This is below the industry average of 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 13.28% | ||
| ROIC | 5.53% |
ROA(3y)5.63%
ROA(5y)6.47%
ROE(3y)17.4%
ROE(5y)18.55%
ROIC(3y)7.58%
ROIC(5y)8.54%
1.3 Margins
Looking at the Profit Margin, with a value of 2.39%, LAD is in the better half of the industry, outperforming 63.11% of the companies in the same industry.
LAD's Profit Margin has been stable in the last couple of years.
LAD has a better Operating Margin (4.47%) than 63.93% of its industry peers.
In the last couple of years the Operating Margin of LAD has grown nicely.
LAD has a Gross Margin of 15.40%. This is amonst the worse of the industry: LAD underperforms 84.43% of its industry peers.
In the last couple of years the Gross Margin of LAD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.47% | ||
| PM (TTM) | 2.39% | ||
| GM | 15.4% |
OM growth 3Y-15.89%
OM growth 5Y2.61%
PM growth 3Y-21.85%
PM growth 5Y0.64%
GM growth 3Y-6.17%
GM growth 5Y-0.01%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LAD is destroying value.
LAD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, LAD has more shares outstanding
Compared to 1 year ago, LAD has a worse debt to assets ratio.
2.2 Solvency
LAD has an Altman-Z score of 2.47. This is not the best score and indicates that LAD is in the grey zone with still only limited risk for bankruptcy at the moment.
LAD's Altman-Z score of 2.47 is in line compared to the rest of the industry. LAD outperforms 54.10% of its industry peers.
A Debt/Equity ratio of 2.07 is on the high side and indicates that LAD has dependencies on debt financing.
LAD has a Debt to Equity ratio of 2.07. This is in the lower half of the industry: LAD underperforms 68.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.47 |
ROIC/WACC0.61
WACC9.11%
2.3 Liquidity
LAD has a Current Ratio of 1.21. This is a normal value and indicates that LAD is financially healthy and should not expect problems in meeting its short term obligations.
LAD has a Current ratio (1.21) which is comparable to the rest of the industry.
LAD has a Quick Ratio of 1.21. This is a bad value and indicates that LAD is not financially healthy enough and could expect problems in meeting its short term obligations.
LAD's Quick ratio of 0.30 is on the low side compared to the rest of the industry. LAD is outperformed by 71.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.64% over the past year.
LAD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.64% yearly.
The Revenue has grown by 8.42% in the past year. This is quite good.
LAD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.35% yearly.
EPS 1Y (TTM)15.64%
EPS 3Y-8.87%
EPS 5Y20.64%
EPS Q2Q%15.71%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y16.59%
Revenue growth 5Y23.35%
Sales Q2Q%4.93%
3.2 Future
The Earnings Per Share is expected to grow by 14.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.12% on average over the next years.
EPS Next Y20.04%
EPS Next 2Y13.19%
EPS Next 3Y12.95%
EPS Next 5Y14.37%
Revenue Next Year4.93%
Revenue Next 2Y4.61%
Revenue Next 3Y5.12%
Revenue Next 5Y5.12%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.56 indicates a reasonable valuation of LAD.
87.70% of the companies in the same industry are more expensive than LAD, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.19. LAD is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.76, the valuation of LAD can be described as reasonable.
91.80% of the companies in the same industry are more expensive than LAD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, LAD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 8.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LAD indicates a somewhat cheap valuation: LAD is cheaper than 68.85% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LAD's earnings are expected to grow with 12.95% in the coming years.
PEG (NY)0.48
PEG (5Y)0.46
EPS Next 2Y13.19%
EPS Next 3Y12.95%
5. Dividend
5.1 Amount
LAD has a yearly dividend return of 0.66%, which is pretty low.
LAD's Dividend Yield is a higher than the industry average which is at 2.13.
With a Dividend Yield of 0.66, LAD pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of LAD is nicely growing with an annual growth rate of 11.85%!
LAD has paid a dividend for at least 10 years, which is a reliable track record.
LAD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.85%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
6.25% of the earnings are spent on dividend by LAD. This is a low number and sustainable payout ratio.
The dividend of LAD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP6.25%
EPS Next 2Y13.19%
EPS Next 3Y12.95%
336.41
+3.8 (+1.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.93%
Inst Owner Change0.03%
Ins Owners0.93%
Ins Owner Change-0.08%
Market Cap8.16B
Revenue(TTM)37.61B
Net Income(TTM)898.90M
Analysts82.11
Price Target402.5 (19.65%)
Short Float %7.4%
Short Ratio5.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend2.1
Dividend Growth(5Y)11.85%
DP6.25%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.07%
Min EPS beat(2)9.71%
Max EPS beat(2)10.43%
EPS beat(4)3
Avg EPS beat(4)6.29%
Min EPS beat(4)-1.6%
Max EPS beat(4)10.43%
EPS beat(8)5
Avg EPS beat(8)2.34%
EPS beat(12)6
Avg EPS beat(12)0.85%
EPS beat(16)8
Avg EPS beat(16)1.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)1.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)1.29%
Revenue beat(8)2
Avg Revenue beat(8)-1.8%
Revenue beat(12)3
Avg Revenue beat(12)-1.77%
Revenue beat(16)5
Avg Revenue beat(16)-1.11%
PT rev (1m)0.16%
PT rev (3m)1.94%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)3.31%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.96%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)1.58%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.56 | ||
| Fwd PE | 8.76 | ||
| P/S | 0.22 | ||
| P/FCF | N/A | ||
| P/OCF | 27.67 | ||
| P/B | 1.21 | ||
| P/tB | 5.24 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)35.19
EY10.46%
EPS(NY)38.41
Fwd EY11.42%
FCF(TTM)-1.75
FCFYN/A
OCF(TTM)12.16
OCFY3.61%
SpS1550.95
BVpS279.12
TBVpS64.2
PEG (NY)0.48
PEG (5Y)0.46
Graham Number470.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 13.28% | ||
| ROCE | 9.34% | ||
| ROIC | 5.53% | ||
| ROICexc | 5.58% | ||
| ROICexgc | 7.25% | ||
| OM | 4.47% | ||
| PM (TTM) | 2.39% | ||
| GM | 15.4% | ||
| FCFM | N/A |
ROA(3y)5.63%
ROA(5y)6.47%
ROE(3y)17.4%
ROE(5y)18.55%
ROIC(3y)7.58%
ROIC(5y)8.54%
ROICexc(3y)7.8%
ROICexc(5y)8.76%
ROICexgc(3y)10.26%
ROICexgc(5y)11.04%
ROCE(3y)12.38%
ROCE(5y)13.83%
ROICexgc growth 3Y-22.88%
ROICexgc growth 5Y-1.28%
ROICexc growth 3Y-24.14%
ROICexc growth 5Y-3.26%
OM growth 3Y-15.89%
OM growth 5Y2.61%
PM growth 3Y-21.85%
PM growth 5Y0.64%
GM growth 3Y-6.17%
GM growth 5Y-0.01%
F-Score6
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.03 | ||
| Cap/Depr | 107.01% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 2.34 | ||
| Cash Conversion | 14.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 2.47 |
F-Score6
WACC9.11%
ROIC/WACC0.61
Cap/Depr(3y)135.76%
Cap/Depr(5y)158.69%
Cap/Sales(3y)0.93%
Cap/Sales(5y)1.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.64%
EPS 3Y-8.87%
EPS 5Y20.64%
EPS Q2Q%15.71%
EPS Next Y20.04%
EPS Next 2Y13.19%
EPS Next 3Y12.95%
EPS Next 5Y14.37%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y16.59%
Revenue growth 5Y23.35%
Sales Q2Q%4.93%
Revenue Next Year4.93%
Revenue Next 2Y4.61%
Revenue Next 3Y5.12%
Revenue Next 5Y5.12%
EBIT growth 1Y7.78%
EBIT growth 3Y-1.94%
EBIT growth 5Y26.57%
EBIT Next Year16.34%
EBIT Next 3Y9.97%
EBIT Next 5Y10.99%
FCF growth 1Y91.95%
FCF growth 3Y-63.67%
FCF growth 5Y-28.69%
OCF growth 1Y209.27%
OCF growth 3Y-38.16%
OCF growth 5Y-4.12%
LITHIA MOTORS INC / LAD FAQ
What is the fundamental rating for LAD stock?
ChartMill assigns a fundamental rating of 5 / 10 to LAD.
What is the valuation status for LAD stock?
ChartMill assigns a valuation rating of 6 / 10 to LITHIA MOTORS INC (LAD). This can be considered as Fairly Valued.
How profitable is LITHIA MOTORS INC (LAD) stock?
LITHIA MOTORS INC (LAD) has a profitability rating of 5 / 10.
What is the earnings growth outlook for LITHIA MOTORS INC?
The Earnings per Share (EPS) of LITHIA MOTORS INC (LAD) is expected to grow by 20.04% in the next year.
Can you provide the dividend sustainability for LAD stock?
The dividend rating of LITHIA MOTORS INC (LAD) is 6 / 10 and the dividend payout ratio is 6.25%.